S&P rates Iron Mountain facility BB

Standard & Poor's said it assigned its BB issue-level rating and 1 recovery rating to Iron Mountain Inc.'s senior secured credit facility, which consists of a $1.5 billion revolver and $250 million term loan A following an announced debt refinancing.

The 1 recovery rating indicates an expectation for very high recovery (90%-100%) of principal for debtholders in the event of a default.

The issue-level rating on the debt is two notches higher than the company’s B+ corporate credit rating.

At the same time, S&P revised its recovery rating on Iron Mountain’s senior unsecured debt to 3 from 4. The issue-level rating is unchanged at B+. The 3 recovery indicates an expectation for meaningful recovery (50%-70%; upper half of the range) of principal in the event of a default.

Iron Mountain plans to close on its announced senior secured credit facility refinancing on July 6. It plans to extend the maturity date on the $1.5 billion revolving credit facility and $250 million term loan A by three years to 2019.

The agency does not expect the transaction to affect the company's adjusted leverage ratio, which was 5.4 times as of March 31.

Proceeds will be used to refinance an existing senior secured credit facility.

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